In-Kind Transfers and Work Incentives
Journal of Labor Economics
1988
Recent developments in rationing theory are used to examine the differences between the effects of in-kind and cash transfers on labor supply. It is not possible to tell a priori which type of transfer will cause the greater reduction in hours of work; the answer depends on the extent to which in-kind transfers distort consumption choices and on the relationship between the transferred commodities and leisure. Hicks-Allen complements can cause greater reductions in labor supply than equally generous cash transfers, while strong Hicks-Allen substitutes can induce increases in market work.
- DOI
- 10.1086/298194
- Volume
- 6 (4)
- Pages
- 515-529
- Language
- en
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- BibTeX
- Sources
- openalex crossref